Tihama amends capital hike recommendation, to use proceeds only in expansions

Tihama Advertising & Public Relations Co.’s board of directors modified on Dec. 22 its previous recommendation on SAR 100 million capital hike, stating that proceeds will be used only to support the company’s expansions.

Under the previous recommendation, Tihama said it will use the SAR 100 million rights issue proceeds to support expansions and offset accumulated losses.

No financial impact is expected from amending the recommendation, the company said in a bourse statement.

Shareholders of record on the second day after the extraordinary general assembly meeting date are eligible to the increase, the company said in a bourse statement.

In March, the company’s board of directors recommended a SAR 100 million rights issue to increase its capital.

Last month, Tihama said its accumulated losses as of Sept. 30, 2019 reached SAR 18.4 million, representing 24.6% of capital amounting to SAR 75 million.